Post #18387 by mungofitch on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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With my non-margin account and being option level 1 only I expected that to be refused with a message "Higher option level required" or so. Not so. Non-margin account and option level 1 really is enough --- or would the expected message appear if I´d dare to click on "Submit"?

For restricted (in the broadest sense) accounts, many brokers make exceptions for specific kinds of trades that are, when you look more closely, obviously of no risk to you or your broker as they can never require margin debt or more assets.

The most common one is covered calls: allowed in a non options account with a stock holding to write calls against it (though no more). Another common exemption is buying long calls, since you will never *need* to come up with anything more.

Perhaps your broker allows cash backed put writing and you have enough cash to accept assignment if that should happen?

Jim

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